Sec. 304.
If a municipality issues a municipal security subject to this act and the principal and interest for that municipal security will be paid by 1 or more municipalities not issuing the municipal security under a contract, then 1 of the following applies:
(a) If all of the municipalities contracting to pay the municipal security have been granted qualified status, then the issuance of the municipal security is subject to section 303(2).
(b) Except as provided in subdivision (c), if 1 or more of the municipalities contracting to pay the municipal security have not been granted qualified status, then the issuance of the municipal security is subject to section 303(7).
(c) If 1 or more of the municipalities contracting to pay the municipal security have not been granted qualified status and the other municipalities representing over 50% of the contractual obligation have been granted qualified status and the municipality that issues the municipal security has been granted qualified status and pledges its full faith and credit on the municipal security, then the issuance of the municipal security is subject to section 303(2).
History: Add. 2002, Act 541, Imd. Eff. July 26, 2002
Structure Michigan Compiled Laws
Chapter 141 - Municipal Financing
Act 34 of 2001 - Revised Municipal Finance Act (141.2101 - 141.2821)
34-2001-III - Part III General (141.2301...141.2323)
Section 141.2301 - Issuance of Municipal Security.
Section 141.2307 - Proposed Bulletin; Public Comment Period.
Section 141.2308 - Limited Tax Full Faith and Credit Pledge; Notice.
Section 141.2309 - Sale of Municipal Security at Competitive or Negotiated Sale; Requirements.
Section 141.2313 - Mutilated Security; Substitution.
Section 141.2317 - Interest Rate Exchange or Swap, Hedge, or Similar Agreement; Definitions.
Section 141.2321 - Filing in Electronic Format.
Section 141.2323 - Municipal Security Issued Without Department Approval; Rating.